After disregarding Android and claiming no one is making money on Android, Gameloft has completely reversed its position and will continue to develop for Android phones, specifically the "Second Generation of Android Phones" such as the Motorola DROID and the forthcoming Sony Ericsson XPERIA X10. Here's Gameloft:
“The arrival of this new generation of phones will allow the development of High Definition games that make the most of the technological capacity and the speed of execution offered by the new Android phones. Consumers will benefit from a top quality gaming experience,” says Gonzague de Vallois, vice-president of Publishing at Gameloft.
Gameloft also continues to support the current generation of Android phones and announces the imminent arrival of titles such as Assassin’s Creed. These titles will be accessible on the Android Marketplace and Gameloft internet sites and will further strengthen our catalogue of Android games already available.
Though the reversal is stunning considering Gameloft had just stated that they make 400x more money on the iPhone platform, we think it's a great decision on Gameloft's part. Android now has stellar devices (and will have even more in the future) that will be more than capable in running impressive games. To cut investment in Android at this juncture would just be irresponsible.
However, the problem remains that in-depth, powerful games take up a lot of megabytes (and sometimes even gigabytes) and Android can't currently install applications on the SD card, which leaves a paltry amount of space for apps. Heck, if Gameloft can solve that issue with Android, we'll completely forgive them.